Open AccessDETERMINANTS OF COMMERCIAL BANKS PROFITABILITY: EVIDENCE FROM GERMANY
Author(s) -
Szilard Farkasdi,
Budi Septiawan.,
Erik Syawal Alghifari
Publication year - 2021
Publication title -
jurnal riset akuntansi kontemporer/jurnal riset akuntansi kontemporer
Language(s) - English
Resource type - Journals
eISSN - 2597-6826
pISSN - 2088-5091
DOI - 10.23969/jrak.v13i2.4500
Subject(s) - profitability index , asset (computer security) , net interest income , sample (material) , business , population , capital adequacy ratio , capital (architecture) , interest rate , monetary economics , economics , financial system , finance , geography , microeconomics , demography , profit (economics) , chemistry , computer security , archaeology , chromatography , sociology , computer science
This study aims to determine the determinants of profitability in commercial banks in Germany. The population is 7 banking sector companies listed in the DAX (Deutscher Aktienindex) Bank during the 2017-2020 period, with a sample of 5 banks and producing 20 observational data. The method used is descriptive and verification with multiple regression analysis. The results show that asset size, capital adequacy, deposits and non-interest income have a significant positive effect on profitability. Partially, asset size, capital adequacy and non-interest income have a significant positive effect, while the deposit has a significant negative effect on profitability. The most dominant factor affecting profitability is non-interest income.